REDWOOD CITY — A Redwood City resident pleaded no contest Wednesday to felony workers compensation fraud and willfully failing to file a return or report for claiming that his San Carlos-based moving company paid no payroll — in order to pay less in tax and insurance premiums, causing a loss to insurer of more than $200,000, prosecutors said.
Adolfo Orellana, 58, the owner of Trans One Moving Company, has until April to pay restitution to State Fund, the insurance company through which he obtained his workers compensation policy, in exchange for a maximum sentence of six months in county jail and the reduction of his charges to misdemeanors, according to the San Mateo County District Attorney’s Office.
Orellana was originally facing four counts of felony workers compensation fraud, three counts of willfully failing to file a return or report and one count of failing to pay tax with an aggravating factor of causing a loss greater than $100,000, prosecutors said.
In the plea deal, six of those charges were dropped, prosecutors said. But under a legal agreement, the judge will be permitted to consider the restitution and dismissed charges as part of the final sentence, said San Mateo County Deputy District Attorney Kyle Cakebread. In this case, that would primarily impact restitution being paid related to dismissed counts.
Due to the “excessive loss” in the case, Cakebread said that it was important to the DA’s office that the case was dealt with as felony conduct “given the amount of fraud that was at play,” and that he was satisfied with the final plea to two felony charges.
Because Orellana had no criminal history and was “showing early accountability,” the sentence was reasonable, he added.
“I thought the six-month maximum was appropriate in light of the restitution that should be paid in full,” Cakebread said.
Cakebread added that it is expected that Orellana will have the full amount of restitution paid in the next three weeks.
Thomas Greenberg, Orellana’s defense attorney, did not respond Thursday to a request for comment.
Between January 2021 and February 2025, Orellana fraudulently reported that his company paid nothing in payroll despite employing at least nine people, prosecutors said. Orellana also worked as a technician for San Mateo County’s Public Works Department.
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The fraud was found during a State Fund audit in April 2024, prosecutors added.
Orellana will next appear in court April 28 for the imposition of his sentence. He remains out of custody.
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